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Business Ownership Types Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Ernie and Ellis are partners in an engineering firm. They have a limited liability partnership. Each invested $20,000 to start the firm. Ernie recently gave bad advice that resulted in a large office building being built on a known land fault. The engineering firm was sued and now has to pay a $1,000,000 court judgment. Ellis can be held personally liable for:

Question 2 2. The Board of Directors typically has the following responsibilities except:

Question 3 3. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny handles the real estate transactions. Jenny makes some bad deals and now the group owes $800,000 in delinquent mortgage payments. Jerry can be held personally liable for:

Question 4 4. Janice runs a ski shop and is finalizing her reports for the month of May. At the start of the month, her merchandise inventory stood at $10,300. She made $14,600 in inventory purchases during the month and by the end of May her merchandise inventory stood at $11,700. What was her cost of goods sold for this period?

Question 5 5. Andrew, Allen, Alex and Abby are general partners. They own and run an Antelope farm. Andrew put up most of the money to establish the farm, while Abby spends the most time running the farm. There's no partnership agreement on how profits will be shared. How will the farm's profits be split?

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Question 6 6. The main difference between a general partnership and a limited liability partnership is:

Question 7 7. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny handles the real estate transactions. Jenny makes some bad deals and now the group owes $800,000 in delinquent mortgage payments. Jenny can be held personally liable for:

Question 8 8. A limited liability company is a hybrid of which two business structures?

Question 9 9. Hannah, Liz, and Stacey started a limited liability company, an online jewelry business that really took off. In its first year, The Triple Bedazzle company brought in $60,000 in profits. Since the three women had previously decided to split the profits equally, they each made an income of $20,000. How will The Triple Bedazzle company's income tax be handled on its $60,000 profit?

Question 10 10. Which of the following is a type of inventory system that updates inventory with each sale?

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Question 11 11. Which of the following is NOT considered to be an advantage of a general partnership?

Question 12 12. Which one of the following is not a characteristic of a consumer cooperative?

Question 13 13. Which type of cooperative is owned and controlled by customers?

Question 14 14. When is it necessary to file a Doing Business As form?

Question 15 15. How does an owner start a sole proprietorship?

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Question 16 16. Corporate structure:

Question 17 17. Which of the following attributes is common to all types of business partnerships?

Question 18 18. All of the following are disadvantages of a general partnership EXCEPT _____.

Question 19 19. Which of the following types of merchandising companies buys items in bulk and resells them to retailers or other wholesalers?

Question 20 20. How many people typically work for a sole proprietorship?

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Question 21 21. In many corporations the executive leadership includes:

Question 22 22. What is the formula for calculating net income?

Question 23 23. Which feature of a limited liability company is most like that of a partnership?

Question 24 24. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny handles the real estate transactions. Jerry is a:

Question 25 25. A limited liability partnership is where:

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Question 26 26. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny handles the real estate transactions. Jenny is a:

Question 27 27. _______ liability means that shareholders have the right to share in the profits of the business, but are not personally liable for the company's debts.

Question 28 28. Which of the following businesses cannot be a cooperative?

Question 29 29. Which of the following is the best explanation of a cooperative?

Question 30 30. Which feature of a limited liability company is most like that of a corporation?

Business Ownership Types Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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